One Way to Shift the Tax Burden from the Current

question 1

Multiple Choice

One way to shift the tax burden from the current generation to future generations is to finance a war by:

• A) raising taxes.
• B) printing money.
• C) running a budget surplus.
• D) running a budget deficit.

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Definitions:

Mixed Costs

Expenses that have both fixed and variable components, changing in total with the level of activity but not in a directly proportional manner.

Selling and Administrative Expenses

Costs related to the selling of products and the managing of the company, excluding production costs.

Contribution Margin

The amount of revenue remaining after deducting variable costs, contributing towards covering fixed costs and generating profit.

Selling Price

The price the customer pays for a product or service.